Financial Record Keeping: The First Pillar of Financial Success

We all agree that any solid structure needs a solid foundation to prevent it from falling apart. This foundation is the foundation or I will say that it is necessary for a structure to withstand the earthly elements and be present for a time. Well, it’s the same in business. Your business needs to have a solid foundation to make sure everything you’ve worked so hard for doesn’t fall apart. You can’t be so caught up in the hustle and bustle of your business that you don’t take the time to track and monitor the metrics in your business.

In my opinion, there are four fundamental pillars that your business must have to stand the test of time. If these four pillars are present, your business will have a solid and solid foundation. If you take one or two of the pillars in some way, your business structure will become unstable, start to shake, and eventually collapse.

These four pillars will not only help you lay the foundation for your business or fill in the cracks within your established business foundation, but they will also help increase your bottom line.

I am going to share these pillars with you one by one for the next four weeks and at the same time explain how you can implement each pillar in your daily business processes.

The first pillar is Financial Registry mantenance. This pillar focuses on accounting and bookkeeping services, tracking your entries and exits, reporting. It is important that you constantly keep track of your business numbers. It is the only way to really know what is happening in your business. You have to know your numbers before you can grow your numbers.

Financial record keeping requires consistent recording and tracking of cash inflows and outflows from your business. Financial record keeping is not about putting all of your bills, statements and receipts in a box or in a folder in the corner of your office so they will never be seen again.

Today’s cloud accounting software has made it very easy to keep your records. You can connect your bank account directly to your accounting software so you no longer have to enter every transaction. Once your account is connected, it will download all the transactions that were cleared the night before and place them in a “holding chamber” until you are ready to review and publish them. That’s correct, no more data entry.

To do this consistently, you can develop a step-by-step process, document and follow it seamlessly, or train an employee to do it. You can also hire a professional accountant or accounting practice to help you set up and implement this process.

Keeping track of your daily records will help you find money losses in your business and, over time, reduce costs and increase revenue.